Chapter 4
Current Liabilities
193
Date
Account Title and Explanation
Debit
Credit
AP-8B (
6
)
On May 1, 2016, Cool Water signed a $50,000, six-month note payable with a 7% interest rate.
Cool Water has a September 30 year-end.
Required
Prepare the necessary journal entries to record the following.
a) The signing of the note payable on May 1, 2016
b) The required adjusting entry on September 30, 2016
c) The payment of interest and repayment of the note on November 1, 2016
Date
Account Title and Explanation
Debit
Credit
